To understand today’s monetary system, we need to differentiate between the concept which we call MONEY and the concept which we call CURRENCY. If we go back to a barter marketplace we encounter the concept called VALUE (value in exchange). The concept of ‘value’ is subjective and derives from our consciousness so it can not serve as ‘money’ directly. To assist us with solving this riddle called ‘value’, we invent MONEY (a physical commodity) as our proxy for ‘value’. As human beings we have invented numerous items from nature to serve as our substitute for ‘value’. If we go back to the beginning (some 5000 years prior to today), we probably started with farm products as our original items which solved this riddle called ‘value’. Oats, wheat, barley may have been the original items chosen as ‘money’. These items (at the time) were viewed as items which contained ‘value’. Later, we invented other items such as cowry shells, wampum, deer skins as our substitute for ‘value’ (money). Then we eventually invented metals…such as silver, gold, copper as our proxies for ‘value’ (money).
The most desired items which we chose as our substitutes for the concept called ‘value’ were silver and gold. These precious metals were viewed by the vast majority of consumers and producers as superior proxies for this riddle called ‘value’. People accepted these metals as containing ‘intrinsic’ value. But how can we expand trade further so that our valuations are more logical? What emerged later is the concept called a ‘currency’. A ‘currency’ is merely a name, number, and symbol (within consciousness) prior to being ‘defined’. So if we desire to create a logical and stable currency we need to ‘define’ our currency ‘name’ in terms of the item chosen as ‘money’. For example: If we choose silver as our ‘money’ and the ‘name’ dollar as our ‘currency’, we need to ‘define’ the ‘name’ dollar in terms of silver. This is what happened when our Founding Father, Thomas Jefferson, created the American ‘dollar’. T.J. and our Congress chose to ‘define’ the American ‘dollar’ as grains of silver (specifically 371.25 grains of silver).
Notice that the ‘money’ chosen by the American marketplace was the element called SILVER. This precious metal was then given meaning by creating a currency unit (called the ‘dollar’) which was defined in terms of SILVER. The Coinage Act of 1792 created the definitions of all our currency units (dollar, half-dollar, quarter, dime, nickel, and penny). All these definitions were specific and this allowed our Philadelphia MINT to create coins based on these definitions. All this specificity allowed consumers and producers to ‘value’ their items of exchange (in our marketplace) with logic and confidence. For example: if I produce a dozen eggs from my chicken farm, the marketplace could ‘value’ these eggs in terms of our currency unit. Our currency unit (being defined in terms of a money commodity) had meaning and perceived ‘value…and this gave the marketplace confidence when exchanging and trading items within the marketplace.
Philosophically, Capitalism must have ‘money’ and also a ‘currency’ if it is to solve the riddle called ‘value’. As consumers and producers within a Capitalistic economy, we have agreed to the concept called ‘private’ property. This legal concept allows us to sell and buy within a marketplace where exchange (exchange of value) is allowed. Money and a defined Currency allows us to measure or derive ‘value’ in a logical manner. If we all desire to recreate another economic philosophy (under historical Capitalism for our global economy) we would need to choose some physical item as our ‘money’ and then define a ‘word’ like ‘dollar’ so that we have a currency for valuation. The breakdown of our prior international agreement, called the Bretton Woods Monetary Agreement, severed our chosen ‘money’ (gold) from our chosen global reserve ‘currency’ (the dollar). Today, we have NO ‘money’ within our international community and our ‘currency’ has evolved into a virtual digit (a unit of nothing…typed into reality)!
Our global monetary system is now living with fiat currencies (units of imagination/metal abstractions) which have no anchor to physical reality. At some point down the road, we will need to either eliminate all these imaginary currencies and/or reconstruct a NEW monetary regime (say a new Bretton Woods Monetary Agreement). What is now emerging globally is a crash/collapse of our existing currency units. This crash/collapse is a result of not having an anchor to our metaphysical (virtual) currencies. Fiat currencies typically have a maximum lifespan of around 40 years. Given that our international system abandoned the gold standard in 1971-73, we now are at the END of this 40 year fiat cycle. Today, our current debt and derivative obligations can not be repaid and this eventually leads to a crash of confidence in the global marketplace. This crash environment is now imminent. Watch and learn! Money needs to EXIST so that a Currency can be Defined (in terms of this item)! I am: http://kingdomecon.wordpress.com/
In the 1971-73 period the Bretton Woods Monetary Agreement broke down and a ‘floating’ currency regime emerged thereafter. Starting in 1973 our dollar became (untied to gold) imaginary (merely a ‘number’ with no fixed relationship to physical reality). Our economists then created the Index Dollar and the Index Measures for all the various world currencies. This led to all the Indices which we use today for determining the relative values of all goods and services. The closing of the gold window in 1971-73 also made the concept of ‘derivatives’ necessary for hedging risks within this new Floating Currency Regime. Understanding this history is absolutely essential for understanding why our current monetary/economic system is about to collapse!
In the 1980′s and 1990′s the computer emerged as the key technology for advancing the trading of currencies and for deriving all our asset prices and valuations. This then led to our digital (virtual) currencies of today. Digitization of all paper instruments is now mostly complete and we now live with mostly ‘virtual’ instruments for our currencies, stocks, bonds, and derivative products. The Cashless Society is now here for the vast majority of Western citizens (consumers, producers, lenders, investors, traders, and speculators). This new regime of ‘floating’ units of imagination, called fiat currencies , trading within a relative environment (comparatively) is now the general model for all our international monetary and financial operations.
The important issue to understand is that the breakdown of the Bretton Woods Monetary System resulted in the Floating Currency Regime and the Index System which we now use. When the international community abandoned gold in 1971 (via the decision of President Richard M. Nixon) the result which emerged was an ‘imaginary’ system of floating names/numbers (which we call by ‘names’ like dollar, euro, yen, pound, ruble, krona, etc.). These ‘names’ are derived from our imagination/consciousness and the symbols and numbers which connect these ‘names’ are also imaginary and within our consciousness. Few seem to discern the nature of our current monetary regime as they assume that the ‘numbers’ within their computer screen ($1.00 and multiples thereof) represent real objects from nature. This lack of discernment is now leading to the biggest financial catastrophe of our financial history. We can witness the beginning of this catastrophe as we watch the volatile stock markets globally!
The breakdown of Bretton Woods (1971-73) led to the Floating Currency Regime (currency symbols, numbers, and names) ‘untied’ from physical gold. This led to our ‘imaginary’ (virtual) currencies of today!
In reality, ‘names’, ‘numbers’, and ‘symbols’ are not units from nature. They are units derived from one’s consciousness. Few seem to discern this reality. When ‘money’ was invented (some 5000 years prior to today) money was invented to serve as a tool for valuation. In other words, ‘money’ was a proxy/substitute for the concept which we call ‘value’. Since ‘value’ is a subjective concept and internal to our consciousness, physical ‘money’, like silver/gold provided a ‘tie’ to physical/material reality. We could trade these physical coins and bullion as proxies/substitutes for the ‘value’ we received from our counterparty. This made trade logical and sound (value for value) and these ‘ties’ also promoted confidence and stability within our markets.
Today, we witness the unraveling of this Floating Currency Regime and many discerning financial pundits are now recognizing that our currency units are ‘imaginary’ and fictional. This is leading to a major debt, stock market, bond market, and derivative market crash in the very near future. All the currencies and valuations which are carried on the books (now our virtual computer screens) will eventually revert to the mean (zero). Since all of these currencies are imaginary and the concept of ‘value’ is imaginary (within our collective consciousness) these units of imagination will eventually ‘disappear into monetary heaven. After this future event, we will end up with all the physical/material goods and products (outside our consciousness) but our prices and valuations will revert to zero (nothing). Few seem to discern that this is the trend now emerging globally.
If you desire to understand what is emerging and why, I would suggest that you take my workshop on the history of money and banking (now offered in Arizona). This workshop will enlighten you on all these concepts (their history) and why we now live with imaginary currencies and worthless units of imagination for pricing and valuation of all our goods and services. Understanding the concept of VALUE is essential for understanding money and currencies. Few, however, seem to discern the subjective nature of this concept that we call VALUE. Capitalism is based upon private property and the exchange of goods via the concept of ‘value in exchange’. My background was in the valuation profession and understanding this riddle called VALUE is the most important concept in all of finance, banking, investing, and trading. Give this missive some reflection at your convenience. I am: http://kingdomecon.wordpress.com/
What has evolved since the closing of the gold window in 1971 are ‘units’ of consciousness for our ‘money’. Think about this! Money (really should be called ‘currency’) has become imaginary and totally within our consciousness (also called our Mind). This is very interesting. Money used to be a physical thing from nature. When I was a child I used metal coins (made from silver) for most of the money which I exchanged in the marketplace. Today, I use a smart phone and the swipe of a credit card for my purchases. What a change over these past 70 years. Today, electronic currency and computer circulation of this currency is the standard operating procedure. Money has become a digit (unit of information) which we transfer from computer to computer. Money/currency is now ‘created’ OUT OF NOTHING and ‘typed’ into the computer screen. Is this a viable system for our future? What happens when we use ‘imaginary’ subjective money for controlling people and our economy?
Sweden is now eliminating paper currencies and promoting a total digital society for their economy! All of Europe is following this model. Why does this type of system work for a short time period and then crash? Think of the concept of FORCE OR MANDATION! Think also of the ‘subjective’ nature of this system!
Money used to be a tool for the valuation of items within an exchange transaction. I would offer you my product (produced from my private property) and you would provide me with a unit of money (silver or similar) for this exchange. Value for Value was the process and the philosophy. Today, however, our Central Authorities create ‘imaginary’ units of consciousness (names, numbers, symbols) and we use these non-things for our exchange transactions. Why does this work (temporarily) and why is this possible? I would suggest that FORCE and/or mandation is the reason for this process. I/you have ‘NO’ alternative when I exchange my products for yours but to use these virtual/digital/imaginary units as legal tender. Our STATE mandates that I use and that you accept these artificial units as our legal tender for all currency transactions. This means that if you and I were free to exchange our products without this FORCE, we would likely abandon these artificial units of ‘nothing’. Unfortunately, we are not free to choose our most important item for exchanging ‘value’! Our Centralized Authority (the Fed) mandates our use of ‘imaginary’ money!
If the general consuming public (our global citizens) do not protest this mandation of currency use and force, our Centralized Authorities will force this cashless society on the planet (all 7 billion of us) in the near future. Think about the consequences of a system which controls all our buy/sell decisions! Can a growing economy survive with this type of system? What do we all become under this system of force and mandation?
The trend that is emerging is for some Centralized Authority to mandate what will be used for our ‘money’ and then mandate that everyone buy/sell with these units of ‘nothing’. Is this the Capitalism that is emerging for our society and our planet? Today, digital currencies are ubiquitous and everyone who buys/sells/trades/lends/invests/speculates must use the legal tender mandated by our Centralized Authorities. Digital currencies are now mostly mandated globally. All my savings are now in digital form. All my banking is now mostly digital. All my investing and speculating is now mostly digital. The global trading system is now mostly electronic and computer generated. When I buy or sell the transactions are mostly digital transactions. It appears that we have entered a DIGITAL world of currencies which are MANDATED by the STATE for our use. Is this freedom and a free market economy? Who will control this type of system for our planet? Why is our ‘money’ being centralized and manipulated (by unelected bureaucrats and a global banking cartel)? Isn’t this contrary to our American Constitution (Article I, Section 8 & 10)?
Our planet has approximately 7 billion people needing real wealth for their survival. Why did free market Capitalism produce the surpluses which allow for our just-in-time economy and continual growth? Will a mandated system controlled by Centralized Authorities create the surpluses needed for our future needs and growth? The history of Centralized money typically leads to inefficiency and a stifling of growth!
History suggests that an economy which does not allow for real ‘free enterprise’ can not create the surplus productivity which is needed for a growing/consuming world. Today, Capitalism is being replaced with a Global World Authority (the G-20 is the newest group of rulers now making decisions for our world society)! Most of our institutions are now also Global institutions. Examples are the United Nations, International Monetary Fund, World Bank, World Trade Organization, International Tele-communications Union, Bank for International Settlements, World Court of Justice, G-7, G-20, etc. Can a centralized global authority create the economic surplus which a growing world society needs. History suggests that this is unlikely to occur. Individual freedom and private enterprise has been the engine for all our past surpluses. We now witness the death of this free enterprise society. Globalization and digitization of all currencies is the trend for our future. Who is aware of the dangers emerging?
The G-20 (a political authority) is emerging as our global decision-making body (they meet in Washington D.C. this week). Can this type of decision-making body work for economics and our future prosperity? Does Central Planning lead to surplus productivity globally? I don’t think so! History speaks loudly on this issue!
Bucky has a great philosophy! We need to make the existing model of Keynesianism obsolete! Our current model is mostly obsolete and causing distortions, inefficiencies, and manipulations of all market data. Have you noticed how computer algorithms have distorted, suppressed, and manipulated the ‘prices’ of silver/gold recently? Have you noticed the bubbles now brewing in most stock markets? Is this sound economics?
Currently there are 48 million Americans on food stamps and some 92 million under employed! Some 20% of our Global population is living in poverty! Our global debt is in the quadrillions. Does this reveal anything about our current economic model? Isn’t a new economic model and a new philosophy needed (going forward)?
We now need to think about what is emerging globally. Our new internet world is creating the need for real change in how we relate as a global society. Economics is the foundation for human survival. Our current economic model (called Keynesianism) is dying rapidly. This model started back in 1934 and has created global DEBT which can not be repaid. This model has run its course and is now mostly obsolete for our new world of realtime markets. What type of new MODEL is needed for our new world of 7 billion? I think we need to think in terms of DECENTRALIZATION as the #1 concept going forward. Centralization leads to Communism and Collectivism. These philosophies have been tried and found wanting. Both of these philosophies are proven failures. We need a new philosophy (and a new model)for the new millennium which is emerging. With respect to money, we either need NO MONEY or NEW MONEY. What would you prefer? That is my missive for today! I am: http://kingdomecon.wordpress.com/
Today, we live with currencies which are virtual and which are circulated within the computer screen. These currencies are ‘typed’ into the computer screen by select unelected authorities (bankers/policymakers) and then circulated from computer to computer as our proxies for ‘value’. These currencies should be viewed as ‘imaginary’ in that each currency is now a digit (within cyberspace) which has no physical substance and which can not be physically transferred from one trader to another. Furthermore, currencies (historically) are NOT Money. Virtual currencies now make up most of our circulating currencies on our planet. In some Western countries some 96% of all currency transactions are now accomplished using these virtual/imaginary currencies. Let’s think about the real purpose for ‘money’ and ‘currencies’ to discern if these computer digits (as our proxies for value) can work in our global economic society. Are they working NOW? Why? Why not?
Value in exchange is not just the exchange of virtual currencies! What underlies the exchange is crucial (is the underlying asset associated with real economic wealth)? What is the purpose of an exchange (say barrels of oil, bushels of grain, or loafs of bread)? Isn’t an exchange suppose to reflect an ‘exchange’ of real wealth’?
The original ‘purpose’ for inventing money was to deal with the concept which we call ‘value’. As we exchange one product for another we encounter this concept called ‘value’. Since this concept (of our mind) is metaphysical and without any objective meaning, we need some item from Nature to serve as a proxy for the concept which we call ‘value’. The best proxy which has emerged over the past 5000 years has been the metal which we call Silver (also Gold). Silver has been viewed by the vast majority of human beings as a ‘thing’ from Nature which contains a stable ‘value’ (relatively). Gold also has been viewed in a similar manner over our long economic history. This has meant that silver and gold emerged as substitutes or proxies for this metaphysical concept which we call ‘value’ (value in exchange). Today, this mindset has been changed by our official authorities who have dropped silver and gold from our monetary system and promoted a new type of ‘money’ (virtual digits within the computer screen). Are any of these units perceived as having ‘value’? What about a long-term ‘store of value’?
A company produces a physical product (this represents ‘value’). Payment should be in a currency unit which holds its ‘value’ (relatively). Virtual currencies are subjective and created out of consciousness, this makes these currencies unstable for representing ‘value’. These currencies are metaphysical (subjective) and can not work as real ‘stores’ of value for longer term purposes!
Why can not virtual digits (within the computer screen) work as proxies for ‘value’ for the longer term? Let’s think about the purpose of economics and why ‘money’ was invented in the first place. The historical purpose for an economic/monetary system was to increase WEALTH for a nation/society. So what is ‘wealth’? Wealth has historically been viewed as physical/material items produced and consumed by people. Food items (wheat, corn, oats, etc.) are material items produced from the land. Cattle, hogs, chickens, etc. are material items produced for consumers food needs. Oil, coal, minerals, etc. are material items produced from our earth for transportation, etc. All our items of shelter (homes, apartments, factories, etc.) are material items produced for our consuming society for real needs. Wealth includes all the material/physical items that we use and consume as a growing society. What is NOT included in the concept that we call ‘wealth’? Today, most of our currency accumulations are not related to wealth creation!
Notice the exchange of ‘value’. The fish has perceived ‘value’ as food and the gold nuggets are perceived as ‘value’ in exchange for this item. The gold nuggets have historically been viewed as a long-term ‘store’ of value (an ‘objective’ exchange…thing for thing)! Computer images (our digital currencies) are really ‘subjective’ units of exchange! These units have no long-term existence and no long-term stability as ‘stores’ of value!
Wealth does not include politicians, preachers, teachers, and administrators who enunciate mere ‘words’ and ‘policy’ statements. In other words, ‘rhetoric’ does not qualify as ‘wealth’. We could say that all services and activities which produce nothing material or physical could be viewed as NOT producing any real ‘wealth’. Another ‘name’ for WEALTH is stuff. The stuff in our homes and garages are the best examples of previously produced ‘wealth’. All the natural resources (in the ground) which have not as yet been mined or produced could also be viewed as ‘potential’ wealth. The best example is our ‘oil’ (in the ground), natural gas (in the ground), and all our minerals (in the ground). The goal of economics is to increase production of our natural resources so that used-up wealth can be replaced with new wealth. This on-going job is continuous and never stops as long as people live on our planet. New ‘wealth’ is needed continually and increasing ‘wealth’ is needed if prosperity is to grow for our 7 billion planetary citizens.
Political speeches, preaching to the choir, playing video games, etc. do not produce real material wealth (in real-time). Rhetoric is fine and helpful at times, but it’s not necessarily relevant as an economic product (a thing of value)! Does political or similar rhetoric assist with growing our real economy (that is the question)?
Capitalism has produced the concepts of Private Property and Money. These concepts then produce the process which we call Exchange. As we ‘exchange’ our goods and products within our society (marketplace) we encounter this difficult and subjective concept called ‘value in exchange’. To deal with this subjective concept we INVENT money. So, what type of money serves as a valid proxy for this subjective concept called VALUE? The only valid MONEY (historically) is that which people view or perceive as containing VALUE. So what has historically been viewed as containing VALUE? We end up with the precious metals which we call by the name Silver and Gold. History shows that these two metals (over some 5000 years) have been the best options (tools) for resolving this difficult concept which we call VALUE. As long as Capitalism survives, MONEY is needed to solve the issue of ‘value in exchange’. Today, we have a serious problem as our current ‘money’ is NOT ‘money’. Let’s explore!
This economist/philosopher desired to eliminate ‘private property’. Without ‘private property’ there would be no private exchange and no real need for money! To each according to his need and from each according to his ability (enforced by an Authoritarian State)! This was the essential Communistic dogma!
Today, our monetary system (globally) has evolved into a system of virtual currencies which are circulated within the computer screen. The dollar, pound, yen, euro, krona, etc. are all now mostly digital currencies. Digital currencies are also virtual currencies. These currencies can not be viewed as MONEY as they have no material/physical substance which can be exchanged OUTSIDE the computer screen. Try to ‘grab’ a virtual/digital currency which is within your computer screen. It’s not possible! The item that we observe within our computer screen is within cyberspace (space which is really an extension of our consciousness). Can anyone ‘grap’ a currency unit that is INSIDE my/your consciousness? Can anyone physically exchange a currency unit that derives from consciousness (the human MIND) and then enters the computer screen via ‘typing’ (numbers)? I don’t think so! So what are currencies which are within the computer screen?
Today’s currencies are virtual or digital (within the computer screen). They enter the computer screen via ‘typing’ of numbers at the Authorized Central Banks on our planet. This process should be viewed as subjective, manipulative, and corrupting! All currencies on our planet are now mostly digital (virtual) currencies!
Computer screen currencies are metaphysical and/or imaginary units with NO ‘value’ and with NO ability to serve as an objective proxy for VALUE. These units are subjectively produced by our banking cartel and then circulated within our interconnected computer environment (cyberspace). They are divorced from material/physical reality (our Space/time Universe). These units are great for exchanging between person’s on the internet, but they are useless for solving the greater issues of VALUE in EXCHANGE. To solve the issue of ‘value in exchange’ Capitalism invented physical objective MONEY. The best options which Capitalism invented have been SILVER coins and GOLD coins. Think about the PURPOSE for money and currencies! The purpose for money is to solve the riddle of VALUE in EXCHANGE. How can virtual/imaginary currencies (created subjectively from the MIND of our banking cartel) solve this riddle called VALUE? It’s not possible! History demonstrates that it is not possible!
Historically, silver and gold have been viewed as ‘objective’ money and also an objective unit of currency (when defined)! Today, these precious metals are no longer used for valuation of our goods and services. Our currencies today are subjective! Is Capitalism over or is a re-structuring of the System necessary?
Today’s fantasy currencies (called MONEY) can not solve any of the core issues of Capitalism. Money is a TOOL which was invented to solve the issues of ‘value’. What is now happening (globally) is fantasy economics (exchange of mathematical codes and algorithms) designed for HFT traders and for Centralized banker ‘manipulations’. This is totally unsound for the 7 billion human beings needing real WEALTH for their survival. Virtual currencies are NOT wealth nor can they produce wealth given the computer generated system now in operation. What has evolved since the closing of the GOLD window in 1971 is a type of FANTASY economic/monetary system which must soon crash and collapse. This could start any day now! Get ready for the biggest financial crash and collapse in the history of planet Earth! That’s my message for today. I am: http://kingdomecon.wordpress.com/
Circulating currencies are now mere ‘pulses’ of light (photons). Our electro-magnetic spectrum reveals all the frequencies available for sending data from Sender to Receiver (via our high-speed electronic computers). Data (our digital currencies) enter the computer via human input (typing) and then the data is transferred from computer to computer via pulses of light (photons) at near the speed of light (186,000 mps). One’s and Zero’s (the code) convert these pulses of light to digits which we observe within our computer screen as numbers (our money). Does anyone discern the evolution of money and currencies from our Founding as a Nation until today? We started our monetary history with a metal (called silver) being our money. We then defined our currency unit (dollar) in terms of this monetary metal ($1.00 = 371.25 grains of silver). This started with the Coinage Act of 1792.
Fiber Optic cables transfer our ‘money’ (now digits in the computer) at near the speed of light from Sender to Receiver! Our entire planet is now wired for digital currencies (circulated via pulses of light)!
Pulses of light send data (our digital currencies) from computer to computer (globally)!
As time evolved we dropped the silver (and gold) from our circulating currencies and forced the marketplace to accept ‘paper’ (bills and notes) as our fantasy money (1934 and 1971). Then in the 80′s and 90′s we gradually dropped the ‘paper’ bills/notes and inputed numbers (digits) within our electronic computers. Today, we live with these digits which are generated by pulses of light (photons) and the protocol of one’s and zero’s for creating the images within our computer screens. Does anyone discern what has happened over the last 200 + years? We started with a physical metal (from Nature) as our money (chosen by the marketplace) and gradually all monetary policy has been Centralized within our monstrous commercial Banks (like the Fed) where select (unelected) officials can create our ‘digit’ money from their metaphysical Consciousness (mental thinking). Example: QE and similar gimmicks!
A metal from Nature (silver) was our ‘money’ originally! Our currency was a defined amount of this metal (under the ‘name’ which we chose as our currency…the American dollar!
Paper currencies emerged as our circulating ‘money’ after 1934 and internationally in 1971. These currencies should be viewed as metaphysical derivations (the numbers engraved on the paper derive from our consciousness)!
Today’s currencies are circulated within the computer screen as virtual digits (photons and data codes)! Most trading of currencies are now accomplished via secret codes and algorithms. No human interaction is necessary!
The trend in motion for today’s ‘money’ is our smart phone. Just scan the code and make a payment from your virtual computer account! Virtual reality and cyberspace have now replaced physical reality and physical money!
These unelected officials can then ‘favor’ select corporations (like J.P. Morgan Chase), finance firms (like Goldman Sachs), international organizations (like the IMF), other foreign Central Banks (like the ECB and the BIS), intergovernmental organizations (like Fannie and Freddie), select industrial firms (like General Motors), etc., so that phony (funny) money can be given to crony Capitalist’s for their further use in distorting, manipulating, and rigging the general marketplace. Today, we have HFT traders who have no motivation for improving our general economy (real wealth and prosperity) but they merely desire to manipulate market ‘prices’ for their personal gain and aggrandizement. What has Capitalism become (mostly since the closing of the gold window in 1971)? Don’t blame the people, blame the SYSTEM!
These two executives are examples of select and favored money brokers. They could be viewed as the Capitalism of the 1%! Who are they and what institutions do they control and manage?
The entire Keynesian economic model has become mere mathematical (algorithmic) fantasy and an illusion/delusion perpetrated on the vast majority of hard-working Americans (who have not had the time to discern what has happened). Today, our so-called ‘money’ is really NOTHING and NO WHERE. Our dollar is now a metaphysical unit of consciousness and consciousness is really another ‘name’ for our thinking MIND. Today, our money is circulating as pulses of light (photons) mostly within fiber optic cables which connect all our wired electronic computers. Algorithms are now used primarily for trading these pulses of light and the digits which emerge from mathematical codes within each computer. Light (photons) are the means used for transferring digits (numbers) from my computer to your computer, from the bank’s computer to another bank’s computer, and from the Central Banks computer to another Foreign computer on our planet.
Algorithmic trading is now ubiquitous! Let the machine do the executions! The goal is price profits (not helping the general economy)! Algorithmic codes are great for supressing the silver/gold markets!
What a unique system for solving the economic problems of scarcity, hunger, shelter, transportation, and personal growth so that global prosperity can develop. The impersonal computer (now interconnected globally) has become the MEANS for distorting, manipulating, and rigging the entire global economic system. All debt is now within the computer screen (as virtual units of nothing), all stocks are now mostly virtual units of nothing, all bonds are now mostly virtual units of nothing, and all consumer savings are personal wealth are now mostly virtual units of nothing. ‘Nothing’ has become the key word within finance and economics. The Consciousness (of select unelected banksters) creates these units of nothing which we circulate within our computer screens. Fractional reserve banking allows additional units of nothing to be lent to select individuals and entities who have financial and political clout with the unelected officials who can create these units of nothing. What a system!
The favored few will ‘rule’ over finance and economics until Americans wake-up to how our system operates! Fantasy economics will likely continue until the people get educated! This is emerging slowly!
Few understand what has evolved these past 40 plus years since the closing of the gold window in 1971. Fantasy economics has emerged and select officials (mostly all unelected by the public) run this network of fantasy (nationally and globally). Who understands? The vast majority of Americans desire to avoid these ‘hard’ issues of life. As a teacher of these issues I find that the vast majority of Americans prefer to live in the ‘dark’ when it comes to economics, finance, and monetary issues. What a shame! Living in the ‘dark’ merely makes the ultimate day of reckoning that much more difficult to internalize. When each American is personally affected by the coming collapse of our fantasy system, then interest may grow among these dodgers of reality. We’ll have to wait and see what develops in the coming days, weeks, months, and years. Take the time to start learning about these issues if you want mental health in the coming difficult years. I am: http://kingdomecon.wordpress.com/
What is the most important concept for discerning reality and change? I would suggest that this concept is the ‘word’ NOW! All that we human beings experience on this planet is experienced within the NOW moment. The NOW…and successive moments of NOW is how I live my life (and I presume you do likewise). What does this mean? This means that ideas like the Past and the Future are mostly meaningless since we never experience these ideas. Yes, most people do not live ‘consciously’ in the NOW and this is why these people get confused about the ‘nature’ of Reality. The ‘word’ Past actually describes a NOW memory as does the ‘word’ Future. This means that ALL that I/You experience is a NOW experience! You can watch this video for some details about living in the NOW. Watch starting at 11:25 for the important details: https://www.youtube.com/watch?v=SJOWhfERyws.
Our experiences are always a ‘now’ experience! Our ‘memories’ reveal a vision of the ‘past’. Our ‘imagination’ reveals a vision of the ‘future’. Both ‘memories’ and ‘imagination’ are NOW experiences!
The presenter on this video is an Atheist by the name of Sam Harris. Sam is probably one of the most articulate Atheist’s on issues involving this Worldview. He sees the world with a total focus on the Present Moment…also called The NOW. He views his Brain as the Source of his Consciousness (a deception, in my opinion). He does, however, view Consciousness as central to discerning what is real and relevant. I agree with his view on Consciousness even while I disagree on his interpretation of what is the SOURCE of Consciousness. His view that my/your Brain originates Consciousness amounts to a view that physical ‘matter/energy’ originates Consciousness. I would challenge this view as being flawed and without real scientific merit. In reality, my/your Consciousness (what we call our life within) emerges (not from our Brain) but from a Higher Conscious Intelligence (a Spiritual Source)! Sam, however, has a clear message of reality that is relevant when he espouses that The NOW as how we actually live and experience reality! Watch the video by Mr. Harris to discern why living in the present moment is essential for discerning reality!
Christopher Hitchens, Sam Harris, and Richard Dawkins (their Worldview focuses on the ‘now’ for interpreting reality)! I agree that the NOW (and successive moments of now) is how we experience life and the financial markets! We can learn from everyone when it comes to understanding ‘reality’!
Right NOW I will check my smart phone for the PE ratio of the Russell 2000 Index. It has jumped up to 98.22. In my prior missive, where I mentioned that a huge stock market crash will soon emerge, the Russell 2000 Index was at a PE 75.80. Why is the PE increasing with few noticing this crucial number? The Price Earnings Ratio (PE) of the Russell 2000 Index was around 25 in 2012, in then increased to 52 at the end of 2013, and is currently (this moment) at 98.22. What does this tell us about today’s speed of light financial markets? It tells me that our markets are now changing in realtime continuously. From moment to moment our stock and futures markets are changing and all this change is leading towards a huge financial CRASH down the road and soon. At some point soon our traders will become ‘aware’ of these bubble markets and take action…then reverse their thinking, emotions, and their programmed algorithms to create this coming financial crash. A NOW moment will develop this ‘awareness’!
Bubble #3 has now reached 16,572 for the Dow. Is it about to Burst? What about the Russell 2000 (now with a PE of 98) and a value of 1181? What about the NASDAQ (now with a PE of 35.90 and a value of 4237.74)?
Today’s Wall Street Journal had a series of articles on the investigation of HFT trading and how these high frequency computers and their algorithms are distorting our financial markets. Many now have concluded that all our financial markets are ‘rigged’, ‘manipulated’, and ‘distorted’ beyond repair. I would agree! One HFT trader started with 1 million of trading funds in 2009 and increased this fund to $44 million in 3.5 years. Does this represent a growth in our wealth or prosperity? I don’t think so! What is happening today is a trading system where currencies (now digits) create ‘prices’ which have no relation to real supply/demand. Our real problem today is our currencies and their metaphysical nature. Who understands! Today, we have NO real MONEY in circulation. What we have today are imaginary currencies (symbols, names, and numbers) derived from our metaphysical consciousness. These currencies represent imagination but not physical wealth , growth, or prosperity!
A picture of finance and economics in 2014. Do all the numbers represent real physical WEALTH (the supposed goal of an economic model)? What kind of economics do we witness today?
All the QE and similar gimmicks increase the ‘appearance’ of wealth and growth (as the numbers increase) but the reality of real physical growth is obscured by these fantasy numbers. Who understands! Our wired financial system (now global and machine driven)…mostly by algorithms and computer software can not improve our economics going forward. Few, however, have any understanding of what is happening. Americans need to wake-up and start thinking for themselves. Now is the time to start thinking! Our economic ship is heading for a crash with a huge tsunami. That is my perception as of NOW! I am: http://kingdomecon.wordpress.com/
John Maynard Keynes (who died on Easter Sunday) April 21, 1946, would probably not recognize today’s economic model which goes by his name. John seemed to view the ‘word’ MONEY as a physical thing derived from nature. He (and Harry Dexter White) did approve Gold (a ‘word’ denoting a physical thing) as necessary for backing the ‘word’ DOLLAR (a no thing unit) during the Bretton Woods Agreement in 1944. Let’s think about today’s Keynesianism, however, as it has evolved since the death of John Maynard Keynes. What has emerged as our MONEY since 1944? What is the difference between MONEY and CURRENCY? Keep in mind that the ‘word’ MONEY originally derives from our mouth/thinking as a ‘no thing’ idea for representing that which we call VALUE (another ‘word’ which emerges from our subjective mouth/thinking). Let’s think about what we are saying and doing TODAY. You may be surprised at what is happening within the ‘halls’ of our policy making institutions today! I am also surprised!
John Maynard Keynes (died in 1946), yet his philosophy has evolved into a total FANTASY! Would John, if alive today, approve of today’s Keynesianism? I doubt it!
Keynes and Company at the Bretton Woods Conference in 1944. John supported a Dollar with real physical GOLD (as backing)! Today, gold is officially out of our global financial system of Central Banking!
First of all, we have NO official MONEY today within our official global economy which many call Keynesianism. The ‘word’ MONEY has no relevance today as we do not use Gold for trading or for settling Balance of Trade accounts. Gold is stored in our vaults and transferred from various vaults (banks, storage houses, and investment entities) on our planet but it is not used for any official settlement of Balance of Trade accounts. This metal (gold and also silver) which was chosen by the consumer and the marketplace as REAL money has been demoted (by our Keynesian officials) to a role of merely a storage item and psychological image within our consciousness. Gold and also Silver are now purchased in the marketplace but not used as our ‘proxy’ for settling issues of VALUE. And it’s the concept of VALUE which is at the core of real Keynesianism and also Capitalism!
What has emerged since the closing of the Gold Window in 1971 is a fantasy philosophy which has no real substance or validity within our space/time reality, yet we still call our economic philosophy by the ‘name’ Keynesianism. With Gold out of our official monetary system, we now trade with phantom currencies which (in reality) do not even EXIST (within Nature). Think about this! What does the ‘word’ DOLLAR actually denote today? What is a DOLLAR (in reality)? The unit called by the ‘name’ DOLLAR is really NOTHING. The ‘word’ DOLLAR comes out of the mouth of an official within our Central Banking Institutions and is viewed (philosophically) as a real THING. But where is this supposed THING (in reality)? Can anyone on the planet hold, carry, transfer, smell, taste, see, this THING which we call DOLLAR? Where is this THING (in reality)? Does it EXIST outside the MOUTH/THINKING of those who CREATE these phantom(s)? Personally, I am unable to locate, find, observe, feel, taste, smell, hold, or hear this ‘word’ called DOLLAR. So what is it and where does it derive from?
Most pundits and consumers think of the above item as a DOLLAR. In reality, however, this item is a paper note with the ‘word’ DOLLAR engraved upon the note. Paper is paper (a thing/item) and the Dollar is a Word/Concept! Discern the difference! Where does the unit called DOLLAR derive from?
Today, we have trillions of so-called DOLLARS floating all around our planet. These phantom items should really not be called THINGS. The word ‘thing’ implies that these units (dollars) EXIST (within Nature and within our Physical Universe). In reality, all these phantom ‘dollars’ are really nothing but WORDS coming from the MOUTHS of official policymakers who have the AUTHORITY to create these IMAGINARY nothings (word objects) from their CONSCIOUSNESS. Let’s THINK about what is really happening in today’s phantom trading markets (globally). All that we call by the ‘name’ currencies are really nothing but phantom units of nothing. Think about this! What does the word ‘nothing’ imply? We all probably recognize that the ‘tooth fairy’ is imaginary and nothing real or physical. The ‘tooth fairy’ is a product of our Consciousness (also called one’s MIND). This also goes for WORDS like Santa Claus, Easter Bunny, and Cinderella. Fantasy ‘words’ have imaginary meanings but we also recognize these ‘words’ as part of our imagination!
Why don’t we (especially all the educated economists, finance ministers, bankers, traders, and monetary pundits) recognize the NATURE of our phantom currencies today? Why don’t we recognize that the ‘words’ DOLLAR, POUND, YEN, EURO, KRONA, PESO, REAL, RUBLE, DONG, LEK, FRANC, ESCUDO, RUPEE, ETC., ETC. are really units of ‘nothing’, ‘phantoms’, mere ‘fairies’ within our imaginary MINDS? We all seem to recognize the imaginary nature of the Easter Bunny or Santa Claus yet we seem unable to recognize the imaginary (phantom) nature of all our global currencies. Why is this so? What is it about reality that makes many of us desire to promote a philosophy of FANTASY and then THINK this is reality? The easiest experience which led me to this conclusion of phantom, fantasy, imaginary currencies was the actions of our recent Fed Chairman, Ben Shalom Bernanke. What did this economist, central banker create and originate after the financial crisis of 2008? What is this ‘word’ that we all now call QE? Where did this ‘word’ originate?
The above ‘symbols’ and ‘names’ become ‘NUMBERS’ within our computer screens (and we call these phantoms currencies). In reality, these units are derived from Consciousness and do not EXIST within our physical space/time Universe! Try to locate one of these within your space/time world?
QE or quantitative easing is a concept (word) derived from mostly the mouth/thinking of Ben Shalom Bernanke after the recent financial crisis of 2008. He recognized that his Central Bank (the Fed) had a ‘master computer’ at the New York Federal Reserve Bank, 33 Liberty Street, which could create phantom ‘money’ just by ‘typing’ numbers (1, 2, 3, etc.) into the computer screen and then CALLING these imaginary NUMBERS (phantoms of the MIND) by the official ‘name’ DOLLARS’. The official policy which emerged from the THINKING of Ben Shalom Bernanke (and later others) was a new concept which everyone started to call QE. This operation, called QE, allowed Ben and his proxies, the option of creating phantom DOLLARS ‘out of nothing’ (also called THIN AIR by many pundits such as Ron Paul). Since 2008 Ben and his proxies (now Janet Yellen) have ‘typed’ into the ‘master computer’ at the New York Fed trillions of phantom NUMBERS (and called these phantom’s by the ‘name’ DOLLARS). What a joke/philosophical delusion…on the intelligence of those who discern this SHAM!
The vast majority of economists and financial pundits, however, seem oblivious to this sham policy which has gone by the ‘name’ QE. All these recent policies and philosophy have also gone under the general name of Keynesianism. I doubt that John Maynard Keynes (if alive today) would approve of any of these shenanigans/phantom policies. Anyway, we now have a global financial system of phantom currencies which are circulating within our computer screens and touted as real THINGS (which exist). Does the above rendition of what is happening seem like reality to you? Can you discern that our so-called legal tender unit, called by the ‘name’ DOLLAR’, is merely a phantom within my/your imagination? Look all around you (right now) and see if you can find, locate, observe, taste, smell, or feel this unit of currency that we call DOLLAR? If you are from outside the U.S.A. then think about your own phantom currency unit! Where is this THING which every official within our banking establishments touts as ‘money’? I can’t FIND any of these currencies in my reality! Think for yourself! Where is all this fantasy leading?
Many are now recognizing the Sham Policy which we call QE. Would JMK approve this policy under the label of Keynesianism? I doubt it! Think for yourself as our System is now corrupted!
Isn’t it time to focus on what is actually REALITY (that which we experience in the NOW)? Gold and Silver are not phantoms! Gold and Silver are not imaginary! Gold and Silver are not mere units of our Consciousness (phantoms)! Gold and Silver coins are THINGS which EXIST outside of my/your Consciousness (also called our MINDS). Isn’t it time to recognize the difference between fantasy (all the global computer digits/currencies) and real items which EXIST on our planet? Why are Gold and Silver recorded within our CONSTITUTION, Article I (section 8) as Constitutional MONEY and our PROXY for Value? Why is our so-called Federal Reserve Banking System a legal sham (operationally) and a perpetrator of unconstitutional ‘phantom’ currencies? I understand that the history of the Fed can be viewed as a creation with ‘good’ intentions! But what is it NOW…TODAY? That is the question to THINK about! Give this missive some of your serious thought and reflection and see if you can DISCERN the difference between Physical reality and Phantom reality! I am: http://kingdomecon.wordpress.com/